In a statement, TSMC said its consolidated sales in September also represented a 4.2 percent monthly increase and a gain of 7.2 percent from a year earlier.

The September revenue of NT$94.92 billion, the second highest in the company's history after its NT$103.70 sales in March, was driven by solid demand for chips made on the 7 nanometer process, according the market analysts.

TSMC also reported third-quarter consolidated sales of NT$260.35 billion, which was an 11.6 percent quarterly increase and higher than its estimate of about a 6 percent rise in U.S. dollar terms.

The company's third quarter sales also beat a European brokerage's estimate of NT$249 billion.

In addition to strong demand for the 7nm chips that TSMC began producing commercially in the first half of the year, the company also benefitted from a weaker Taiwan dollar, analysts said.

In the first nine months of the year, TSMC posted NT$741.70 billion in consolidated sales, up 6.0 percent from a year earlier.

The company is scheduled to give its full third-quarter results and sales guidance for the fourth quarter and the entire 2018 at an investor conference on Oct. 18.

At its most recent investor conference in mid-July, TSMC estimated a 7-9 percent sales growth for 2018, but foreign brokerages have given a 5-6 percent growth forecast.

On Tuesday, TSMC shares ended 0.21 percent higher at NT$244.00 on the Taiwan Stock Exchange, after dropping 7.41 percent in the previous five sessions, although the September sales data was released after the market closed.